The Indonesian energy sector provides a particularly attractive opportunity for well positioned companies in the gas and power industry. National electrification is significantly below the South East Asian average at 88%. Unmet consumer power demand, coupled with the availability of undeveloped, small gas discoveries and the government’s eagerness to attract new players, has created an exciting opportunity within the Indonesian gas and power market, upon which Andalas intends to capitalise.
Andalas has identified multiple project opportunties in Indonesia, it has high graded those projects on which to perform detailed evaluation to determine their suitability of exceeding our internal investment criteria, which are as follows:
– Generate strong economic returns;
– Strong pull factors (local demand, power pricing, government support, local infrastructure);
– Optimised development path
At the point of internal development approval Andalas will seek to undertake the contracting process to take the project through to final investment decision. As part of this process, Andalas may seek to acquire, at limited or no upfront cost, interests in upstream gas resources that will be developed as part of an integrated gas project and power project where it meets all or some of the following conditions:
– It enables the development of an integrated IPP project to proceed;
– Our participation de-risks the delivery of the integrated project;
– It enhances the returns to Andalas shareholders.